Technically, the 2-hour chart indicators are in extreme overbought levels and signaling caution.
Ether Price Remains in Bullish Trend
It was a big week for Ether, as the price was able to break two important resistance levels at $270.00 and $300.00 against the US Dollar.
The ETH/USD pair rocketed higher to break the $300.00 sell wall, and posted a new all-time high at $349.72. It was an amazing ride and can be clearly seen with back to back bullish candles on the 2-hour chart.
There is an 11 candles bullish ride pattern forming ending just near $350.00. I think it should produce a short-term correction in ETH/USD, considering the fact that technical indicators are hitting extreme overbought readings.
On the downside, there is a bullish trend line positioned at $320.00, which may provide support. It also coincides with the 50% Fibonacci retracement level of the last wave from the $290.00 low to $249.00 high.
Below $320.00, the $300.00 handle could act as a strong barrier for sellers if the price extends correction phase. Moving on to the 12-hour chart of ETH/USD, there was a clear break above an ascending contracting triangle pattern at $290.00.
It opened the doors for further gains, and the price spiked above the $300.00 and $330.00 levels. The same breakout zone near $290.00-300.00 might now act as a buy zone and prevent downsides in the near term.
On the upside, once a short-term correction is over, the price may retest $349.00. Should there be a break above $349.00, Ether buyers could push the price towards the 1.236 extension of the recent correction.
To sum it up, the current trend is super bullish for Ether, and the price is likely to continue moving higher. I won’t be surprised if it breaks the recent high of $349.00 soon and trade towards the $400.00 level.